2007-04-14 15:54:28 · 9 answers · asked by Austin R 2 in Business & Finance ➔ Taxes ➔ United States
You have to live in it at least 2 of the last 5 years you owned it ...
Good Luck!
2007-04-18 12:35:39 · answer #1 · answered by Miss Know It All 6 · 3⤊ 0⤋
Two years out of the five immediately prior to the sale, and own it for two of those same five years. You can exclude up to $250K of gain from being taxed - $500K if filing a joint return.
That's everywhere in the US, not just Texas.
Since Texas doesn't have a state income tax, state isn't an issue.
2007-04-14 17:17:41 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
What Wayne Z said is correct. Just to add to that. If you have to move for "unforeseen circumstances," you may be able to take advantage of a portion of the gain exclusion. The IRS defines what "unforeseen circumstances" means, but it generally includes such things as loss of a spouse to required to move because of a job to having a problem with a neighbor. Seems pretty to be a pretty broad definition and it is. So, if you qualify for one of these "unforeseen circumstances," your gain exclusion would be $250 (assuming single - $500 if married filing joint) times number of months in the home divided by 24. Hope this helps.
2007-04-14 16:05:55 · answer #3 · answered by bowens 2 · 0⤊ 0⤋
I don't know about Texas, but for Federal purposes, if the home is:
1) Your primary residence
2) You have lived there two of the last five years
You are exempt from capital gains tax on the first $250,000 of gain. $500,000 if married.
The gain is the profit you make on selling the home, so if you bought it for $100,000 and sold for $200,000, your gain is $100,000, so, no tax.
Short answer: Two years
2007-04-14 16:01:32 · answer #4 · answered by pwi2366 2 · 1⤊ 0⤋
Texas has no capital gains tax on residential real estate. However, the federal government does. If you are single, the first $250,000 over your life time is not taxed. If married, the first $500,000 is not taxed. Anything over those amounts, Uncle Sam will be looking for something.
2007-04-14 16:01:12 · answer #5 · answered by Anonymous · 0⤊ 1⤋
You must own and live in it for 2 of the 5 years prior to the sale. Then, the first $250k ($500k if married) in gain is tax free.
2007-04-14 15:58:58 · answer #6 · answered by Wayne Z 7 · 1⤊ 0⤋
Capital valuable properties is on the earnings, no longer on the gross sale cost. And the capital valuable properties tax is decrease than a hundred% even for the optimal traders. So, undemanding arithmetic says in case you dont make any earnings, you do no longer pay any capital valuable properties tax, and in case you do make a earnings, you basically pay area of the earnings. in spite of the undeniable fact that, something you notice on television is to be considered with skepticism. in case you do no longer likely understand plenty approximately authentic materials, you additionally could make some undemanding blunders that would bankrupt you incredibly quickly. the only guy I knew for my area who made a super style of money on authentic materials had worked for some years as an estimator for a extensive construcion corporation. he would desire to look at a house, and tell interior of a few hundred funds what it might fee to restoration it. You, with out that history, would desire to truly get caught with a lemon that necessary hundreds of dollars earlier it might desire to be offered.
2016-11-24 19:11:26 · answer #7 · answered by leister 4 · 0⤊ 0⤋
Most likely it will take two years of residency before capital gain no longer become an issue. Each state has it's own tax laws though.
2007-04-14 16:03:11 · answer #8 · answered by Anonymous · 0⤊ 2⤋
it used to be three years, now i think it is two, you will have to pay some but the first couple hundred grand is tax free.
2007-04-14 15:57:25 · answer #9 · answered by tomhale138 6 · 0⤊ 3⤋